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Dec 31, 2025
LGI Homes Q4 2025 Earnings Report
LGI Homes reported a solid finish to the year with increased net income and adjusted gross margin, despite a decrease in home sales revenues compared to the previous year.
Key Takeaways
LGI Homes, Inc. announced its financial results for the fourth quarter and full year ended December 31, 2025. The company reported home sales revenues of $474.0 million for the quarter, a decrease from $557.4 million in Q4 2024. Net income for the quarter was $17.3 million, or $0.75 basic EPS, compared to $50.9 million, or $2.16 basic EPS, in Q4 2024. Adjusted net income for the quarter was $22.4 million, or $0.97 adjusted basic EPS. The company closed 1,301 homes in Q4 2025, with an average sales price of $364,310. Adjusted gross margin for the quarter was 22.3%.
Fourth-quarter home sales revenues were $474.0 million, a decrease from $557.4 million in the same period last year.
Net income for Q4 2025 was $17.3 million, or $0.75 basic EPS, down from $50.9 million, or $2.16 basic EPS, in Q4 2024.
Adjusted net income for Q4 2025 was $22.4 million, or $0.97 adjusted basic EPS.
The company closed 1,301 homes in Q4 2025, with an average sales price of $364,310, and achieved an adjusted gross margin of 22.3%.
Revenue by Geographic Location
Forward Guidance
For the full year 2026, LGI Homes expects home closings between 4,600 and 5,400, with an average sales price between $355,000 and $365,000. Gross margin is projected to be between 18.0% and 20.0%, and adjusted gross margin between 21.0% and 23.0%.
Positive Outlook
- Projected full-year home closings between 4,600 and 5,400.
- Anticipated average sales price per home closed between $355,000 and $365,000.
- Expected gross margin as a percentage of home sales revenues between 18.0% and 20.0%.
- Forecasted adjusted gross margin as a percentage of home sales revenues between 21.0% and 23.0%.
- Active selling communities expected to be between 150 and 160 at year-end 2026.
Challenges Ahead
- Outlook assumes general economic conditions, input costs, materials, product and labor availability, interest rates, and mortgage availability remain similar to 2026 year-to-date.
- Assumes average sales price, construction costs, and land availability/development costs remain consistent with recent experience.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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